The Options Before Nigeria

Image

By Michael Owhoko

In the midst of sustained challenge for restructuring and other sundry agitations in Nigeria, there is iota of hope, if only the ruling class is prepared to do the needful, writes Michael Owhoko

Nigeria has been through quite a lot in recent times than at any other time in its political history, but at this very moment, aside the almost resolved security challenges facing Nigeria, issues relating to self-determination and restructuring are some of the burning issues that the government of the day is grappling to manage.

As it is, close observer will easily say the incumbent leadership of the federal government is not favourably disposed to restructuring, whereas, sentiments have easily been aroused by proponents and opponents of the restructuring debate.  Unfortunately, while the civil society and geopolitical interests have been calling for some changes in the Nigerian constitution as a way to perfect and strengthen the union that constitutes Nigeria, the citizenry are not adequately motivated to fully join the clamour either because of lack of clear understanding of the issues at stake or are overwhelmed by economic concerns.

First, either for or against restructuring as currently being canvassed, it is obvious that the people of the South and the North are not on the same page.  Nigerian must understand that as a multi-ethnic society with diverse cultural dissimilarities, the country qualifies as a sociologically complex society, posing a serious challenge to the country’s continued existence as one united nation.  This makes it imperative as a matter of necessity to do the needful and embark on a constitutional amendment that will give birth to a restructured new Nigeria.

Secondly, in discussing issues relating to the Nigerian structure, which evidently, is defective, and the sustained clamour for a truly federal constitution, primordial sentiments must be avoided because as things stand, objectivity is being overwhelmed by emotions depending on who is looking at what issues and the side of the divide on which he or she is rooted. The overall consequence of this will be unhelpful to decision-making process, as emphasis may be on sectional rather than national interest, even at the highest level of governance.

In reality, the Northern Protectorate, which comprises mainly the Hausa-Fulani people and the Southern Protectorate, made up of the Yoruba, Igbo and the Niger Deltans,  are initially district nations with separate cultural peculiarities before they were merged by the British colonial masters strictly for business and administrative purposes in the 1914 amalgamation.

Though the motive was not clear, but it is certainly not unconnected with achieving cost efficiency without passing the incidence of the cost of administration to the home country. This was so because the Northern Region was already experiencing budget deficit at the time when the Southern Protectorate had a robust budget with surplus.

From the onset, not many Nigerians were happy about the forced marriage. In fact, in one of his reactions to the Nigerian nationhood, the leader of the Northern People’s Congress (NPC), the Sardauna of Sokoto, late Sir Ahmadu Bella once said: “The mistake of 1914 has come to light and I shall like to go no further again.” Likewise, the leader of the Action Group (AG), late Chief Obafemi Awolowo also said: “Nigeria is not a nation. It is a mere geographical expression. There are no Nigerians in the same sense as there are English, Welsh, or French. The word Nigeria is a mere distinctive appellation to distinguish those who live within the boundaries of Nigeria and those who do not.

Chief Awolowo, in his book, The Peoples’ Republic, further confirmed the brittleness of the Nigerian state when he said, “It is incontestable that the British not only made Nigeria, but also hand it to us whole on their surrender of power. But the Nigeria, which they handed over to us, had in it the forces of its own disintegration. It is up to contemporary Nigerian leaders to neutralize these forces, preserve the Nigerian inheritance, and make all our people free, forward-looking and prosperous. “

The two men were apparently referring to the unhealthy amalgamation of 1914, and from then till now the Nigerian people themselves have not shown signs of willingness to unite, a confirmation that Nigeria is only a British intention and except other viable options are explored, the fragile peace in the country can still snowball into total disintegration because the country is surely on the precipice.

The most reliable option available to Nigeria is a federal system of government as practised in the country in the first republic from 1960 till 1966. I say this because the fear of Nigeria’s founding fathers has always been that the colonial masters failed to take into consideration the ethnic and cultural differences which ultimately shape peoples’ perception and decisions, hence as it is today, the allegiance of Nigeria’s founding fathers was to their respective regions, and by extension, current leadership, though surreptitiously.

Nigeria purportedly operates a federal system of government today, but the main defect is the absence of the features of that form of government, namely, autonomy of the federating units.  This is conspicuously missing as evident from the dependency structure between the states and the centre.  In a truly federal system, certain characteristics pertaining to the federating units are present, and some these include state-owned constitution, regional police, coat of arm, and so on.

This level of autonomy allows the units to adopt peculiar and independent style of administration to address their specific needs incidental to their culture, values and heritage. Then there is also something very vital that true federalism guarantees and that is fiscal federalism. This defines and provides the framework of financial relationship between the centre (federal government) and the rest of the states.

Chief among what proponents of restructuring are actually calling for and which are well enumerated in my book: Nigeria on the Precipice: Issues, Options and Solutions –  Lessons for Emerging Heterogeneous Democratic Societies , is a constitution that promotes fiscal federalism under which each region is at liberty to generate its own resources and discharge its statutory responsibilities within the limit of its resources, while also maintaining its status as an autonomous state within the federation.

Truth is, researchers, analysts and well-meaning Nigerians have collectively agreed that the bane of Nigeria’s problem is the transition from federal system to the unitary system as perpetrated by the military during their illegal incursions into politics in 1966.

It was during that period that the principle of derivation, an element of fiscal federalism, which was designed to ensure equity by way of compensation to the area from where mineral resources are extracted, was abandoned, whereas, when cocoa, groundnut and oil palm were sources of revenue in the country, the principle of derivation was applied.  This was why the western, northern and eastern regions benefited from 50 percent derivation as provided for by the 1963 constitution.

Now, the challenge is, the Nigerian economy is largely dependent on oil, hence it occupies a place of prominence in the country’s revenue matrix but unfortunately, the exploration of oil in the Niger Delta region has not only had very negative effects on the environment, but the abrogation of the derivation principle has stripped it of its due share of national revenue, making the people of the region to have less to show for the quantum of wealth being taken out of their land.  The derivation principle is currently pegged at a minimum of 13 percent.

Currently, Nigeria is draped with unresolved national issues that are capable of relapsing into an albatross around its neck because these issues are also the forces pulling apart the people of the country. Every ethnic group and every section has one grievance or the other against the Nigerian state. As indicated in my book and in consonance with other opinionated Nigerians, the resentments are as a result of the flawed process that led to the emergence of Nigeria as a country.

The somewhat reluctance of government to address these challenges is exacerbating concomitant frustration in the country and this is slowly but gradually killing the spirit of patriotism with regrettable decline in commitment towards national unity without which there cannot be any meaningful progress. For instance, the Biafra agitation is nothing but one of the symptoms of discontent, so too the militancy in the Niger Delta Region is an indication of frustration in the Niger Delta.

The long and short of this article is that the Nigerian nation is not working, particularly due to the application of wrong solutions induced by insincerity and hypocrisy and as a result, the future of the country is bleak, and, this explains why the clamour for restructuring is gaining unprecedented dimension more than at any time in history.

There is no rocket science to it. The way for Nigeria to go is true federalism, which guarantees fiscal federalism, and implicitly, financial autonomy. This will ensure equity in the administration of revenue because the pattern of revenue sharing formula has remained a bone of contention between federal and state governments. In such circumstance, the principle of derivation serves as a mechanism against revenue injustice, but where true federalism fails to be accepted, confederalism becomes the other available option.

Also, the steady escalation of tension in the country can be doused if the ruling class can throw pride to the wind and chart the path of peace and honour in their approach to resolving the current challenges facing the country by conducting a referendum. Through a referendum, the people can actively participate in deciding which system of government to adopt. Referendum is a political instrument for resolving political questions. It is an aggregation of the wish of the people.

Nigeria has the potential to grow capacity for global relevance, but suppression of the wishes of the people is capable of frustrating this hope.  So, let us concede ethic and sectional pride and allow the country to be repositioned through restructuring to enthrone justice and equity aimed at achieving peace, happiness and progress.

Michael Owhoko, author, Nigeria on The Precipice: Issues, Options and Solutions – Lessons for Emerging Heterogeneous Democratic Societies, wrote from Lagos. 

Share
Related Stories
Image
14-November-2023

A Letter to President Bola Ahmed Tinubu

By Jerome-Mario Chijioke Utomi Dear Mr President, I trust this letter finds you well. It remains a familiar narrative that the Saturday, February 25, presidential election organized by the Independent National Electoral Commission (INEC) affirmed you as the President of the Federal Republic of Nigeria. Further eliciting congratulations on your success is the awareness that all the litigations/and related concerns arising from the electoral exercise have been resolved in your favour. In line with this victory, you are presently faced with the task of delivering Nigeria and Nigerians from the snare of dangerous political and socio-economic challenges. As part of

Image
21-November-2023

National Contradictions Tinubu Must Resolve in 2024

By Michael Owhoko, PhD Any Nigerian with a rational and open mind knows that the complexity of governance in Nigeria today is rooted in the country’s political system, which by any stretch of imagination and logic, is unsuitable for a heterogenous society like Nigeria with over 250 ethnic groups that is characterized by incompatible cultures, varied history, background and interests. These ethnic groups were hitherto independent nations that ceded their sovereignty to the Nigerian state under federalism, a political system that took cognizance of their peculiarities and agreed upon by the country’s founding fathers. But ever since this system was

Image
20-November-2023

Balancing Business Success and Family Succession: Navigating ‘Deemed Offer’ Provisions in Startup Shareholder Agreements

By Thando Sibanda It’s all too easy to think of startup founders as young, vigorous and touched with immortality. But the sector is full of stories of founders dying before their time. Such deaths are always tragic but can be even more so when there isn’t a clear plan in place. Without that plan, conflicts can quickly arise between the family of the deceased, investors, business partners, and other interested parties. Often, the source of this conflict is the founder being subject to a “deemed offer” or “deemed sale” clause. This clause leads to an automatic forced sale of the

Image
10-November-2023

Was Jesus a White or Black Man? (Part 1)

By Emmanuel Udom Jesus Christ is the founder of the Christian religion. Born of a Virgin Mary over 2000 years ago, Jesus, the beloved son of God, came down to earth from heaven on a mission of liberating humanity from sin. More than 2000 years after he returned to heaven, writers, journalists, scholars, researchers and other interested persons have continued to speculate on whether or not our Saviour was a white or black man. Go to Google to read some of the expository and insightful articles and books on the complexion and mission of Jesus Christ on earth, which later

More Stories
Image
24-August-2016

SEC Proposes New Rules For Unclaimed Dividends

By Dipo Olowookere The Securities and Exchange Commission (SEC) has disclosed that it is seeking an approval to make it mandatory for any unclaimed dividends up to 12 years to be transferred into the Nigerian Capital Market Development Fund. But before this is done, the SEC has called for comments and input on the matter from stakeholders, which should be forwarded to the Secretariat, Rules Committee of the Commission, via, [email protected] or through the DG, SEC, not later than two (2) weeks from the date of publication. It said, “Pursuant to the provisions of Section 313(1)(n) of the Investments and

Image
02-May-2023

LinkedIn Ranks TGI Group Among Top 25 Workplaces

By Modupe Gbadeyanka A fast-moving consumer goods company, Tropical General Investments (TGI) Group, has been named among the 2023 LinkedIn Top Companies list. The global conglomerate, which has WACOT Rice, CORMART, and CHI Farms, as its subsidiaries, made it to the 25 Best Workplaces, where people can grow their careers, affirming its long-term investment in employees for long-term success. The firm was recognised for performing excellently on the eight assessment pillars used for the second annual ranking, including the ability to advance, skills growth, company stability, external opportunity, company affinity, gender diversity, educational background, and employee presence in the country.

Image
10-July-2017

OPEC May Ask Nigeria to Limit Oil Output

By Modupe Gbadeyanka Minister of Oil in Kuwait, Mr Issam Almarzooq, has disclosed that Nigeria and Libya may be asked to put a limit  to their oil outputs having recorded stability in their countries lately. The two countries were exempted from the oil cut deal reached in Austria last November by members of the Organization of the Petroleum Exporting Countries (OPEC). The deal became effective from January 1, 2017 and by April this year, OPEC said the oil cut agreement was at 98 percent compliance level. According to Bloomberg, Mr Almarzooq disclosed on the sidelines of an energy conference in

Image
13-June-2023

Understanding Technical Indicators: Tools for Analyzing Market Trends

Technical indicators are very effective instruments for analyzing market movements and making profitable trades. Potential entry and exit points in the market may be determined using these indicators based on past data like price, volume and open interest. Some of the most often used indicators include moving averages, Bollinger Bands, the Relative Strength Index, the Stochastic Oscillator, Fibonacci Retracements and the Moving Average Convergence Divergence. Moving averages help investors determine the underlying trend in a security’s price by removing the impact of temporary price changes. Bollinger Bands provide a measure of volatility by showing two standard deviations above and below

Image
24-July-2023

Elon Musk Officially Changes Twitter Logo to X 

By Adedapo Adesanya Twitter owner, Mr Elon Musk, has gone ahead with plans and officially changed the microblogging platform’s famous bird logo to an “X” on Monday. Business Post reported on Sunday that the billionaire said the platform would soon “bid adieu to the Twitter brand and, gradually, all the birds.” As of Monday, the domain X.com directs users to Twitter’s homepage, though Twitter.com also remains live. However, this newspaper can confirm that this change has not spread to its mobile app. This development is part of sweeping reforms that have occurred since the Space X CEO acquired the platform

Image
07-February-2022

Ellah Lakes, Montserrado to Build Sugar Processing Plant

By Aduragbemi Omiyale A sugar processing plant capable of refining 600 Tons of Cane per Day (TCD) is to be built by Ellah Lakes Plc in collaboration with Montserrado Investment Limited. The sugar refinery is expected to run on 100 per cent renewable power and the period from construction to completion and commissioning is estimated to be two years. According to Ellah Lakes, the facility is in support of the National Sugar Master Plan (NSMP) championed by the National Sugar Development Council (NSDC), which is geared towards “Accelerating the development and growth of the local sugar industry to achieve national

Image
22-November-2023

Senate Joins Reps to Pass 2024-26 Medium Term Expenditure Framework

By Adedapo Adesanya  The Senate has joined the House of Representatives to pass the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), with a borrowing plan of N7.8 trillion for 2024, N9 trillion deficit, and federal government total expenditure of N26 trillion. The President of the Senate, Mr Godswill Akpabio, announced this on Wednesday, with an oil price benchmark of $73 per barrel of crude oil, 1.78 million barrels per day as contained in the MTEF/FSP documents, special intervention (recurrent) of N200 billion, special intervention(capital) of N7 billion and an exchange rate of N700/$1o. This is coming a

Image
12-February-2018

US Stocks May See Continued Rebound in Early Trading

By Investors Hub The major U.S. index futures are pointing to a higher opening on Monday, with stocks likely to see further upside following the higher close seen last Friday. The upward momentum on Wall Street comes as traders seem likely to continue to pick up stocks at reduced levels following recent weakness. Trading activity may be somewhat subdued , however, with a lack of major U.S. economic data likely to keep some traders on the sidelines. Following the sell-off seen last Thursday, stocks saw substantial volatility over the course of the trading session on Friday. The major averages showed

Ad
Ad
Recent Stories
Image
02-December-2023

Strong Inflationary Pressures Keep Nigeria’s Private Sector PMI Down

By Modupe Gbadeyanka Strong inflationary pressures in November further negatively impacted companies in Nigeria, with new orders and output both falling as customers were either reluctant or unable to pay higher charges. Purchase prices rose at the fastest pace in almost two years amid exchange rate weakness and higher costs for fuel and materials. According to the latest Purchasing Managers’ Index (PMI) from Stanbic IBTC, business conditions remained under pressure, scoring 48.0 points last month compared with the 49.1 points it garnered in October 2023. Readings above 50.0 signal an improvement in business conditions, while readings below 50.0 show deterioration.

Image
02-December-2023

Coker-Odusote: 100 Days at the Helm of NIMC

By Walter Duru, Ph.D It was Albert Einstein who once said that “setting an example is not the main means of influencing another, it is the only means.” That sentiment expressed by Einstein is the primary essence behind the theory of transformational leadership, which requires passion, charisma, and the ability to motivate others. Transformational leaders are usually very authentic, emotionally intelligent, great listeners, results-focused, visionary, and self-aware. In just 100 days at the helm of the National Identity Management Commission (NIMC), Engr. Abisoye Coker-Odusote has ushered in a new era of transformational leadership, leaving an indelible mark on the organization. Her eventual confirmation

Image
02-December-2023

Partnerships for Progress: Collaboration Between Banks and Fintechs is the Future of Banking in Africa

By Ike.S Anison Historically, the formal banking sector’s penetration in Africa has been relatively low. And, while there has been significant improvement in this area in recent years, there is still a significant portion of the population on the continent who are unbanked or lack access to financial services. According to the World Bank, approximately 350 million adults in sub-Saharan Africa are still unbanked, accounting for 17% of the 2 billion global unbanked population. This has largely been due to a struggle to tap into the continent’s low-income segment, the widest proportion of the population. Consumers within this market feel

Image
02-December-2023

Naira Plunges 11.4% to N927/$1 at Official Market as FX Demand Rises

By Adedapo Adesanya The Naira started the first trading session in the last month of 2023 on a negative note after it depreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the official FX window, by 11.4 per cent or N94.87 on Friday, December 1, closing at N927.19/$1, in contrast to Thursday’s exchange rate of N832.32/$1. The December rush for forex contributed to the weakening of the domestic currency in the spot market yesterday, as the supply of foreign currency could not meet what customers needed. Data showed that the value of FX transactions recorded

Image
02-December-2023

Newrest, FrieslandCampina, Acorn Drive 0.14% Gain at Unlisted Stock Market

By Adedapo Adesanya The trio of Newrest Asl Plc, FrieslandCampina Wamco Nigeria Plc, and Acorn Petroleum Plc made the NASD Over-the-Counter (OTC) Securities Exchange appreciate by 0.14 per cent on Friday, December 1. The three gainers pressed down the 8 Kobo loss reported by UBN Property Plc, which closed the trading session at N1.52 per unit compared with the preceding day’s value of N1.60 per unit. During the trading day, Newrest Plc gained N1.46 to close at N16.10 per share compared with Thursday’s closing price of N14.64 per share, FrieslandCampina Wamco Plc moved up by 60 Kobo to end the

Image
02-December-2023

Oil Falls on Worries About Voluntary Supply Cuts

By Adedapo Adesanya Oil slumped by more than 2 per cent on Friday as traders showed scepticism about the depth of supply cuts by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) as well as concerns about sluggish global manufacturing activity. Brent crude went down by $1.98 or 2.45 per cent to close at $78.88 a barrel as the US West Texas Intermediate (WTI) crude dropped $1.89 or 2.49 per cent to sell for $74.07 a barrel. For the week, Brent posted a decline of about 2.1 per cent, while WTI lost more than 1.9 per cent.

Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the